Reliance Industries has declined comments on reports that the company is in talks with Saudi Aramco to sell 25% in its refining and petrochemical business but stated that the conglomerate evaluates opportunities on an ongoing basis.
Saudi Aramco, world’s largest oil exporter, is believed to have first shown interest in Reliance about four months ago but the talks gathered momentum after Saudi crown prince Mohammed bin Salman (MBS) visited India in February. He had then met RIL’s head Mukesh Ambani.
“As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis,” RIL NSE 2.25 % said in its response to the report.
The report, quoting people with knowledge of the development, said that an agreement on valuation is likely by June this year. A minority stake sale in RIL could fetch around $10-15 billion, valuing RIL’s refining and petrochemicals businesses at around $55-60 billion.
Goldman Sachs is said to have been mandated to advise on the proposed deal.
The report, quoting sources, said that RIL is likely looking at creating a standalone vertical for its downstream businesses – refining and petrochemicals – in which Aramco would participate. This would be somewhat similar to BP’s deal to buy a $7 billion stake in RIL’s upstream natural gas and exploration businesses in 2011.
